The Human Capital Forum is a significant event for those involved in management, the HR sphere, and human capital development. One of the headline speakers of the event was Dr. Corrie Block, a globally recognized expert in corporate innovation and human capital management. We bring to the attention the most interesting ideas of the speaker.
Dr. Corrie Block, an international expert in leadership, @ dr_corrie_block
One of the biggest challenges associated with the concept of human capital — is people who do not always behave like "capital". Usually, you invest resources and in a good year you can earn up to 10-15% profit. But in reality, it doesn't work that way. We can be productive and creative, as well as sad and tired. And all of this in just one day. Therefore, it is important to remember: employees are not just «resources», they are people.
I dedicated 25 years of my life to understand how a leader should behave to build the work of employees most effectively. Culture and strategy start with leadership. I have trained CEOs who have achieved incredible results and those who have been quite average managers. I have worked with top management of the United Nations, World Bank, Microsoft, Airbus, and others. By gathering information and comparing the activities of different leaders, I have derived six pillars of effective management.
1. Sports
I conducted a study that collected data on CEOs of companies from the S&P 500 index. I compared two types of physical activity: golf and marathon running. These two activities take approximately the same amount of time.
Over 10 years, companies with golf-playing CEOs were valued at 1.53 billion dollars. In contrast, companies with CEOs who ran marathons were valued at 2.5 billion dollars. The average difference in company valuation — 800 million dollars. Thus, physical fitness is important: it reduces stress and contributes to the development of cognitive processes. More intense physical activity boosts self-esteem and allows for long days of meetings without getting tired.
2. Confidence
Confidence is not a character trait. It is a skill that can be mastered. Often it is acquired through the risks. No one became confident by entering the same building every day. It is necessary to take new actions. Learning to walk was also risky because you had never done it before.
I feel confident during performances. I have earned it through years of performing in front of different people. But it all depends on the context. Give me a piano instead of a pointer, and there will be no trace of confidence.
So here are two conclusions: develop the skill by taking risks, and consider the context.
3. Discipline
This is the main distinguishing feature between leaders who show high and low performance. Discipline is the ability to choose your behavior, regardless of how you feel. Even if you are tired, lazy, or want to have dinner. Thanks to discipline, we can overcome our emotions.
But this is not the same as motivation. Motivation is a substance in the brain, dopamine. And it lasts for 40 seconds. That's why it's so hard to sustain motivation. In less than a minute, the inspiration will fade. Discipline will remain.
4. Connections
People from ancient times knew that it is easier to survive together. Our ancestors overcame obstacles by working together. There is a scientific explanation for this feeling - oxytocin, or the «trust hormone». Here's how oxytocin manifests itself in the workplace. A 2017 study shows that 93% of employees are willing to work for lower pay in places where they feel connected to their colleagues. Employees who trust their company, take two days fewer of vacation than others. They work one hour more per day and become more productive.
A Gallup study in 2019 shows that the monetary benefit from such an employee — $9000 per year. In companies with a trusting atmosphere, there is 59% less turnover, 17% higher productivity, and 21% more profit.
An interesting paradox: these employees are willing to work for lower pay, but they receive more because they have many opportunities for advancement due to their engagement.
5. Rest
Never forget about rest. I am in the club of those who wake up at 05:00. But at the same time, I am also a member of the «go to bed at 22:00» club. It has been scientifically proven that men need an average of about seven hours of sleep, while women need 7 hours and 20 minutes.
Remember: we do not become stronger by working out in the gym. We become stronger during rest. Thus, make sure that your employees do not overwork themselves.
6. Competition
Competition allows us to bring out the best in ourselves.Remember Usain Bolt's records at the Olympic Games. At the highest level, we compete not to win, but to become stronger.
Therefore, leaders and organizations should always encourage a competitive spirit and not be afraid of competition.